$ZEC I started mapping all of this out days ago based on fundamentals, structure, geometry, symmetry, emotion, liquidity zones, and historical reactions to similar events. This is a PROBABILITY plan!
Markets do not move on news; they move on positioning. After today’s comments from Powell, the initial selloff was not the "final move," but the first leg of a continuation structure. When an important catalyst hits, liquidity pulls back, volatility increases, and the price often begins to form a compression triangle. This is normal as it is how the market rebalances after a crowded position is reset.
Most people interpret the first bounce as bullish momentum. In reality, it is often just a lower high forming within the consolidation pattern. What follows is usually:
- A tightening range (triangle) as I have mapped
- A retest towards the breakout level
- A continuation move towards the true demand zone, where longer-term buyers actually step in
Nothing has changed in the larger structure. The target zone remains the most likely destination because it aligns with:
-- multi-week trendline support
-- the midpoint of the descending channel
-- fib confluence
-- the typical digestion window of 24-36 hours after the FOMC
Lesson: the first move is emotion; the second is structure; the third is truth. Staying patient during the compression phase prevents FOMO from making decisions for you.
